SB 5702
SignedSenate
Toll rate setting process
Streamlining the toll rate setting process at the transportation commission.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill speeds up how the Washington State Transportation Commission sets and adjusts toll rates by removing the requirement to follow the standard administrative rulemaking process, while still requiring public notice, outreach, and open meetings. It also strengthens protections for bondholders and clarifies how toll revenue must be used, especially for the Tacoma Narrows Bridge project.
- Exempts the Transportation Commission from the standard administrative rulemaking process (Administrative Procedure Act) when setting or adjusting toll rates.
- Requires the Transportation Commission to provide at least 30 days’ public notice, conduct outreach, hold an open public meeting, and post updated toll rates on its website before implementing changes.
- Allows the Transportation Commission to adopt toll changes on an emergency basis (without full notice and outreach) if needed to meet legal or financial obligations like bond covenants.
- Clarifies that toll revenue must first cover operating/maintenance costs and debt service on bonds before other uses, and strengthens legal protections for bondholders.
- Requires quarterly public reporting of expenditures for the Tacoma Narrows Bridge account and limits use of toll revenue to facility-related costs only.
Who is affected
- Washington State Transportation Commission — The Washington State Transportation Commission gains faster authority to adjust toll rates and policies without following the standard administrative rulemaking process, while still being required to hold public meetings and provide notice.
- Toll road users — Toll road users (drivers) may experience more frequent or responsive toll rate changes, especially in response to financial or legal needs, and benefit from clearer public notice and remote meeting access.
- Washington State Department of Transportation — The Washington State Department of Transportation will coordinate with the Transportation Commission on toll rate changes and must provide quarterly expenditure reports for specific projects like the Tacoma Narrows Bridge.
- Bondholders and investors in toll facility bonds — Bondholders and investors in state-issued toll facility bonds benefit from a more predictable and legally secure toll revenue stream, as the bill strengthens protections for bond covenants and revenue pledges.
- General public — The public gains more consistent access to toll rate information via the commission’s website and new requirements for remote participation in meetings.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The bill mandates 30-day public notice, remote meeting access, and website posting of updated toll rates — improving accessibility and transparency for everyday drivers, especially those with disabilities, rural residents, or limited transportation options. Remote participation requirements ensure broader public engagement than the current APA process, which often favors in-person attendance.
Public SafetyPeopleRef: Sec. 4(1)(a)-(d), (5)The bill formalizes $130M in general fund transfers over 10 years to support the Tacoma Narrows Bridge, ensuring predictable funding and reducing risk of project delays or default. This protects ratepayers from sudden toll spikes due to funding shortfalls and prevents costly litigation or bond downgrades that could raise borrowing costs for the state.
FinancialPeopleRef: Sec. 5(1)(f) & Sec. 5(2)The requirement for public outreach and rulemaking detail around toll rate options — including discounts and exemptions — creates a stronger foundation for equity-focused toll design (e.g., low-income discounts, off-peak pricing) than the current APA process, which has been criticized for being slow and rigid. This could support more responsive and fair pricing models over time.
TransportationPeopleRef: Sec. 4(1)(b), (6)Streamlining toll collection fee adoption (e.g., for transponder programs) reduces administrative delays and compliance costs for WSDOT and the Transportation Commission, potentially enabling faster deployment of new payment technologies and reducing operational bottlenecks that frustrate drivers.
Business & EmploymentLean peopleRef: Sec. 7 & Sec. 8 (repealing APA rulemaking for toll collection fees)Quarterly public reporting of Tacoma Narrows Bridge expenditures increases transparency and accountability for a high-profile project, helping prevent cost overruns and mismanagement that could otherwise lead to unexpected toll hikes or tax increases to cover shortfalls.
Local GovernmentLean peopleRef: Sec. 5(5)
Potential Concerns (4)
Exempting the Transportation Commission from the Administrative Procedure Act (APA) reduces procedural transparency and public input, weakening democratic oversight of tolling decisions. While public notice and meetings are still required, the removal of formal rulemaking eliminates opportunities for formal comment periods, administrative hearings, and judicial review standards that apply under the APA — reducing accountability for rate-setting decisions that directly affect drivers.
Local GovernmentIndustryRef: Sec. 2(d)The emergency exception allowing toll changes without public notice or outreach (e.g., to satisfy bond covenants) creates a risk of rushed, poorly vetted decisions that could undermine public trust or lead to operational errors. While the bill requires outreach “to the greatest extent practicable,” the lack of a minimum threshold for compliance could enable de facto bypassing of public engagement, especially for non-urgent financial pressures.
Public SafetyIndustryRef: Sec. 4(2)The bill prioritizes bondholder protections and debt service over other uses of toll revenue, effectively locking in revenue streams for investors at the expense of broader transportation needs. By requiring toll revenue to cover debt service before other uses — and strengthening legal pledges to bondholders — the bill constrains future legislatures’ ability to redirect funds for equity-focused transportation improvements (e.g., bus service, bike lanes, low-income toll discounts), disproportionately burdening low- and middle-income drivers who rely on public transit alternatives.
FinancialIndustryRef: Sec. 4(1)(c) & Sec. 5(3)-(4)By strictly limiting toll revenue use to facility-related costs only (excluding broader regional mobility or affordability programs), the bill prevents use of toll funds to offset housing costs for low-income households (e.g., transit-accessible housing subsidies or regional transportation access passes). This reinforces car-dependency in low-income communities and limits policy flexibility to address housing-transportation linkages.
HousingLean industryRef: Sec. 5(3)-(4)
Who Is Most Affected
Low- and middle-income drivers face higher toll burden due to prioritization of bond repayment over equity programs; may benefit from faster, more transparent rulemaking but lose long-term flexibility for affordability measures.
Bondholders gain stronger legal protections and more predictable revenue flows, reducing investment risk and potentially lowering state borrowing costs — a clear win for financial stakeholders.
WSDOT and the Transportation Commission gain operational flexibility to respond to financial or legal obligations quickly, but lose some procedural discretion in exchange for tighter revenue-use constraints.
Local governments and transit agencies lose the ability to use toll revenue for broader mobility or housing-affordability programs, reinforcing car-centric planning and limiting tools to reduce transportation inequity.
Businesses that rely on freight movement (e.g., logistics, manufacturing) may benefit from more responsive toll adjustments but could face higher costs if tolls rise to meet bond covenants rather than performance goals.